Scholarly record
SUSTAINABILITY REPORTING QUALITY IN THE ERA OF CSRD AND ESRS: A CRITICAL REVIEW AND CONCEPTUAL FRAMEWORK
Abstract
The introduction of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) has fundamentally transformed sustainability reporting in the European Union. Corporate sustainability disclosures are shifting from largely voluntary practices toward a standardized and assurance-oriented reporting framework aimed at improving transparency, comparability and decision usefulness of ESG information. Despite these regulatory developments, the evaluation of sustainability reporting quality remains conceptually fragmented. Existing approaches typically focus on disclosure quantity, sector-specific sustainability indicators or market-based ESG ratings. However, many of these approaches were developed before the introduction of the CSRD and ESRS and therefore may not fully capture the conceptual and regulatory requirements of the new reporting environment. This study critically reviews existing approaches for assessing sustainability reporting quality and evaluates their relevance within the emerging European sustainability reporting framework. Based on a conceptual literature review, existing assessment models are classified into four categories: disclosure indices, quality-oriented reporting frameworks, sectoral assessment models and ESG rating methodologies. The analysis identifies several limitations of existing approaches, particularly their limited ability to incorporate key elements of the ESRS framework such as double materiality, governance structures, value-chain transparency and assurance readiness of sustainability information. To address these limitations, the study proposes a conceptual framework for assessing sustainability reporting quality aligned with the structure and principles of the ESRS. The framework provides a foundation for future empirical research examining sustainability reporting practices in the evolving European regulatory environment.
Publication details
References12
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